company presentation - 1st semester 2014
TRANSCRIPT
1st SEMESTER 2014
A NEW BRAZILIAN COMPANY IN THE REAL ESTATE
BROKERAGE BUSINESS OWNED BY THE MANAGEMENT
LISTED IN THE SÃO PAULO
STOCK EXCHANGE BOVESPA DXXI3
WHO IS DUXXI?
VISION, MISSION & VALUES
MISSION
Marketing of real estate with a deeper understanding of what
buyers seek and what assets mean to them, through the work
of most qualified professionals and innovative, efficient and
effective processes
BRAND
VALUES Ethics, dedication, long-term commitment, human
development, innovation and owned by the management
VISION To transform the purchase of real estate into
a rewarding, secure and enjoyable experience for both
the buyer and the seller
TO THE BRAZILIAN REAL
ESTATE BROKERAGE MARKET
BUSINESS MODEL THAT
VALUES EFFICIENCY
TALENT AND TECHNOLOGY
OVER VOLUME
EXPERIENCED TEAMS
NO TIES TO PAST
MODELS AND NO
LIABILITIES OR
LEGACY COSTS
Headquartered in São Paulo, we offer services for
commercial and residential properties for all classes and
we bring true value to our clients, brokers and investors
NEW COMPANY
NEW BEGINNING
NEW APPROACH
ECONOMIES’ GROWTH DYNAMICS 2013 GDP GROWTH Q1 2013
China
Turkey
Japan
South Korea
Chile
Brazil
Canada
Australia
UK
Colombia
USA
South Africa
Poland
Mexico
Germany
France
Euro Zone
Russia
Spain
Italy
-1 -0,5 0 0,5 1 1,5 2
1.6
1.6
1.0
0.8 0.8
0.6
0.5 0.5
0.3 0.3
0.3
0.2
0.2
0.0
0.0
-0.2 -0.2
-0.3
-0.4 -0.6
GDP GROWTH Q2 2013
Turkey
China
Brazil
South Korea
Japan
South Africa
Germany
UK
USA
Australia
France
Chile
Canada
Poland
Euro Zone
Spain
Russia
Italy
Mexico
-1 0 1 2 3
2.1
1.7
1.5
1.1 0.9
0.7
0.7 0.7
0.6 0.6
0.5
0.5
0.4
0.4
0.3 -0.1
-0.3 -0.3
-0.7
6TH LARGEST
GROWTH
3TH LARGEST
GROWTH
Source: BACEN
BRAZIL’S SOCIAL & ECONOMIC SCENARIO BRAZIL IS NO LONGER AN ECONOMIC PROMISE. IT’S A REALITY
5%
REGIONAL POPULATION AND GDP
THE SOUTHEAST REGION
(SP, RJ, MG & ES)
CONCENTRATES
MORE THAN HALF OF BRAZIL’S GDP POP.
GPD
14.3%
16.5%
2013 GPD US$ 2,2
Trillion
POP.
GPD
8.4%
5.3%
POP.
GPD
27.8%
13.5%
POP.
GPD
7.4%
9.3% POP.
GPD 55.4%
42.1%
5%
AGRICULTURE
SERVICES
69%
26%
INDUSTRIES
SOURCE: IBGE
Brazil presented fast growth from
2000 to 2010, and although this pace
has slowed, the domestic economy
continues to growth despite the
unstable world scenario
Per capita GDP rose significantly
between 2000 and 2010, increasing
real household income
Interest rates and controlled inflation
facilitated access to credit market
growth of 7% - 8% p.a.
The value of real estate assets should
increase at an average annual rate of
4% until 2030 (in real terms)
GDP Growth
1.3%
2.7% 1.2%
5.7%
3.2% 4.0%
6.1% 5.2%
- 0.3%
7.5%
2.7% 0,9
4.3%
2000
2010
7,010
11,127
Interest Rates and Inflation Evolution
0.0%
5.0%
10.0%
15.0%
20.0%
25.0%
IPCA SELIC
Per Capita GDP: US$
TOTAL INHABITANTS AGE GROUP PYRAMID
Source: IBGE
BRAZIL’S SOCIAL &
ECONOMIC SCENARIO
SOCIAL CLASS POPULATION DISTRIBUTION
Sourc
es:
IPEA /
PN
AD
(IB
GE)
A C B D-E
6,4 10,5 6,4 10,5
65,9
100,3 96,2
69,6
Recently Brazil has become a nation with 50% of its population belonging to the middle class, with a great
potential for consumption. The richest classes (A and B) have also registered significant growth.
2003
2011
Total: 175 MM
Total: 195 MM
Classes:
BRAZIL’S REAL ESTATE MARKET 2013
A 2/3 DECREASE IN HOUSING
DEFICIT IN BRAZIL WILL
COST R$18B PER YEAR
UNTIL 2030
SOURCE: E&Y/SBPE/CAGED/Sinduscon/FGV
201.032.714 INHABITANTS
1.26 MILLION JOBS (2.8%
ABOVE 2012)
5.7% OF BRAZIL’S GDP
R$109.2 BILLION (approx. US$50 BILLION) INVESTED CREDIT IN REAL ESTATE, 32% MORE THAN 2012 529.8 THOUSAND UNITS FINANCED – 17% INCREASE OVER 2012
Unemployment (%)
Sourc
es:
IBG
E,
Bir
d,
Febra
ban,
FG
V a
nd C
BIC
- C
âm
ara
Bra
sile
ira d
a Indúst
ria d
e C
onst
rução
BRAZIL’S REAL ESTATE
MARKET
12.5%
9.8%
9.3%
8.1%
6.0%
5.7% 1.43
1.48
1.53 1.54
1.63 1.67
1.76
1.82 1.86 1.88
Actual Efficiency (R$ THOUSANDS)
Unemployment X Actual Efficiency
Demand for New Homes During Period (millions) 36.9 Demand for New Homes/Year (millions/year) 1.6 Necessary Investments in Homes (R$ millions/year) 194,500
Estimated value of Housing Stock (R$ million) 1,967,000 Annual Investments for Replacement (R$ million) 59,010
Total investments to reduce the deficit by 2/3
by 2030 (R$ million) 420,919 Annual Investments (R$ million) 18,301
HOUSING DEFICIT
Replacement of Homes
DEMOGRAPHIC CHANGES
Main housing demand factors will generate an approximate
investment requirement of R$ 271 billion per year
What it is (2013)
R$ 222 bn
What it Should Be
R$ 271 bn/year
Real Estate
Sector’s GDP
BRAZIL’S REAL ESTATE
MARKET
258 261 260
267 267
277 282 293
298 308
317
338
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013P
What it is (2013)
R$ 222 bn
What it Should Be
R$ 271 bn/year
Real Estate
Sector’s GDP
133 127
146 145 146
158 169
184 215
225 213 222
1.7% 1.6% 1.8% 1.4% 1.6% 1.7%
2.1% 2.8%
4.8%
6.4%
3.7%
7.9%
BRAZIL’S REAL ESTATE
MARKET
BRAZIL’S REAL ESTATE
MARKET Launches by Region
Brazil – 2012 79,9 million / 183 thousand units
28.5
11.1
3.9 3.3 3 2.7 2.4 2.2
2 2 1.9 1.5 0.7 1 1.1 1.3
10.8
Sourc
es:
IBG
E,
Bir
d,
Febra
ban,
FG
V a
nd C
BIC
- C
âm
ara
Bra
sile
ira d
a Indúst
ria d
e C
onst
rução
Real estate financing/GDP (%)
Brazil 2011 / others 2010
Access to Mortgage Lending
(% by Income Group) Absolute Housing Deficit
1997 - 2011
85% 63% 63%
62% 61%
60%
52% 41%
36% 23% 22%
16% 10%
5% 5%
A & B
Groups C Group D Group E Group
7.7%
5.0%
3.0%
1.7%
Southwest Northwest North South Midwest
34.33% 33.47%
12.97% 12.56%
6.68%
Sourc
es:
IBG
E,
Bir
d,
Febra
ban,
FG
V a
nd C
BIC
- C
âm
ara
Bra
sile
ira d
a Indúst
ria d
e C
onst
rução
BRAZIL’S REAL ESTATE
MARKET
BRAZIL’S REAL ESTATE
MARKET
Income Groups Population from 18 to 64 years Number of Families by Income Group (million)
Growth 2007 - 2030
Sourc
es:
IBG
E,
Bir
d,
Febra
ban,
FG
V a
nd C
BIC
- C
âm
ara
Bra
sile
ira d
a Indúst
ria d
e C
onst
rução
2030E 2007A
A, B & C Groups
D & E Groups
The demographic dividend combined with the expansion
of the economy will allow the migration of 35.6 million
people from the actual D and E Social Class to A, B and C
in the next 10 years. It is reasonable to assume that these
new social configuration will certainly boost the demand
for housing
15.5
8.4
3.3 1.1 0.3
29.1 27.6
21.8
11.0
4.3 1.6
31.7
(8%) 78%
160%
233%
291% 433%
Less than
R$ 1K
R$ 1K to
R$ 2k
R$ 2K to
R$ 4k
R$ 4K to
R$ 8k
R$ 8K to
R$ 16k More than
R$ 16k
36%
64%
2009
18%
82%
2020E
THE REAL ESTATE
BROKERAGE MARKET
IS STILL PLAYED THE
OLD FASHIONED WAY
MUCH HAS CHANGED OVER THE
LAST 10 YEARS
Traditional Model
Key Challenges
Companies need to explore new and smarter
ways to sell inventories and launches
THE TRADITIONAL MODEL CANNOT
KEEP UP WITH THE NEW DEMAND
M&A Based Models and/or Family
run businesses
Ordinary sales approach
Offline communications
Lack of investment in technology and processes
Low/no business intelligence
Unfocused operations/sectorized organization
Real Estate is still a favorable market:
only the best players will succeed
Real Estate IPO boom drove the industry
to higher inventory levels;
IT'S TIME TO
THE BRAZILIAN MARKET REINVENT
3
SALES FORCE
Market intelligence
department
Highly trained teams / client
management guidance
Well defined incentives;
commissioning + benefits
Enhanced capacity to attract
efficient salesforce
CAPACITY TO ATTRACT AND RETAIN THE
BEST SALESTEAM IN THE INDUSTRY
1 PROCESS
Integrated front end; sales
front + ERP+ CRM
Streamlined process;
qualified team + contract
cycle management
Dynamic monitoring
salesteam activities
FOCUS ON CONTINUOUS IMPROVEMENT
2 ONLINE TOOLS
Reversed approach versus
traditional sales
Clients will filter options on
the website BEFORE reaching
to sales team
Intelligent tool: geolocation,
local convenience (hospitals,
malls, schools, convenience
stores,etc)
ENABLES DEEP KNOWLEDGE ON
CUSTOMER BEHAVIOR
4 Capacity to offer tailor-made projects and to
address new industry demands
CONSISTENT AND PLANNED SALES STRATEGY
BUSINESS STRATEGY
READY FOR NEW
LOCAL CHALLENGES
OBJECTIVE OUR GOAL IS TO BECOME ONE OF TOP 3 COMPANIES
IN THE BRAZILIAN MARKET IN THE NEXT 10 YEARS
1 TECHNOLOGY ONLINE SALES TOOLS AND SMART
INTERFACES WITH CLIENTS AND
BROKERS
2 PROCESSES INNOVATIVE TOOLS WILL ALLOW A LOW
COST OPERATION WITH EFFICIENCY, QUALITY
TO MAXIMIZE RESULTS
3 TALENTS KEY MANAGERS ARE ALSO STOCKHOLDERS AND
BROKERS ARE RECRUITED FROM THE BEST IN THE
MARKET
STRATEGIC SHIFT IN
MARKET PARADIGMS USER FRIENDLY INNOVATION
WORLD WIDE WEB IS THE
NEW MARKET PLACE FOR
ADVERTING AND MARKETING
REAL ESTATE PROPERTIES
DUXXI WILL LEVERAGE ON A
GROUND-BREAKING ONLINE STRATEGY
AND REINVENT THE BUSINESS MODEL FOR
DOING BUSINESS OVER THE INTERNET
WITH NEW SEARCHING, PRICING
AND COMPARING CAPABILITIES
STRATEGIC SHIFT IN
MARKET PARADIGMS OPERATION EXCELLENCE
DUXXI IS PLANNING, DEVELOPING AND
STRUCTURING THE MOST EFFICIENT
OPERATIONAL PROCESSES, BUILT UPON
THE BEST INDUSTRY PRACTICES
IN A NEW, FAST GROWING MARKET,
IT’S EASY TO BE OVERWHELMED BY THE
VOLUME OF BUSINESS COMING IN
WE AIM HAVING THE LOWEST
COST OPERATION, HIGHEST
EFFICIENCY AND QUALITY
PROCESS TO MAXIMIZE RESULTS
AND COMPETITIVENESS
DUXXI IS A NEW, FULL-SERVICE COMPANY FOUNDED,
OWNED AND MANAGED BY SOME OF THE MOST
SUCCESSFUL PROFESSIONALS IN THE BUSINESS
UNITED BY THE SAME PRINCIPLES AND VALUES
STRATEGIC SHIFT IN
MARKET PARADIGMS FOUNDED AND MANAGED BY OWNERS
A BUSINESS IS FORGED THROUGH INNOVATION, HARD WORK AND FACE-TO-FACE RELATIONSHIPS
BY ATTRACTING TALENTS AS SHAREHOLDERS, WE
ENSURE LOYALTY AND LONG TERM COMMITMENT
TO OUR PROJECT
FINANCIAL
POSITION & CORPORATE GOVERNANCE
Board of directors (3 to 8 members, at least 1 independent)
Listed in BM&FBovespa
Audited by PWC
Quarterly financial reports
IFRS Accounting Standards
ERP system installed: Senior
Proprietary sales management
Legal Advisor: Levy & Salomão
OPERATIONAL SCHEDULE
Foundation and listing on BOVESPA & CVM
Business Plan prepared by E&Y
Senior Management Hired
Headquarters and operational offices setup
Supera IBG starts BPO mapping
CRECI brokerage license obtained
Brokers team trained and certified
Infrastructure and systems implemented
Offices in São Paulo, Campinas and Alphaville inaugurated
Sales operations Started
Office in Santos Inaugurated
Expectations to inaugurate new offices
SEP 13 NOV 13 FEV 14
FUTURE DEZ 13 OCT 13 AUG 13 PRIOR TO JUL 13
